QUESTION
Is an employer legally obligated to activate COBRA coverage within a certain period of time (assuming the premiums have been paid)?
Asked on Jun 25th, 2012 on Labor and Employment - Illinois
More details to this question:
I have paid two months'' worth of premiums for COBRA coverage but the insurance company still considers my coverage "inactive" because my former employer has failed to process it on their end (Blue Cross has told me the company - my former employer - has not "uploaded" whatever needs to be uploaded in order to activate my coverage. I have verified that my payments have been received by the third party that processes COBRA payments (ADP Benefit Services). In the meantime I need an MRI and can''t get one because, at least as far as Blue Cross is concerned, I''m not insured. My former employer has been largely unresponsive, though finally last week I was told it was "being processed". However, I just talked to Blue Cross and still no change in my "inactive" status yet. At the very least would I have grounds to demand my premium payments back at this point?
1 ANSWER
4 Awards
As long as you have done all you are asked to do, then the employer will be held liable for any medical bills or lapses in coverage caused by their delay. There are times when the employer is late but when they finally comply, the insurance will be retroactive to the date it should have begun. If BCBS fails to cover bills because of the employer, then the employer will be forced to pay those bills and be hit with other penalties.
You should consult with an attorney who is experienced in this area of the law ASAP.
Answered on Jun 25th, 2012 at 1:49 PM